Mogo(US:MOGO)2025-11-07 12:00Financial Performance - Revenue for the three months ended September 30, 2025, was CAD 16,963 thousand, a decrease of 4.1% compared to CAD 17,685 thousand for the same period in 2024[7] - Net loss for the three months ended September 30, 2025, was CAD 4,509 thousand, compared to a net loss of CAD 8,112 thousand for the same period in 2024, indicating an improvement of approximately 44.5%[7] - Gross profit for the nine months ended September 30, 2025, was CAD 35,586 thousand, slightly up from CAD 35,299 thousand for the same period in 2024, showing a growth of approximately 0.8%[7] - Operating expenses for the three months ended September 30, 2025, totaled CAD 12,365 thousand, a slight increase from CAD 12,296 thousand in the same period of 2024, reflecting a rise of about 0.6%[7] - The company reported a revaluation gain of $2,748,000 for the three months ended September 30, 2025, compared to a gain of $5,284,000 in 2024, showing a decrease of 48.0%[48] Assets and Liabilities - Total assets decreased from CAD 189,648 thousand as of December 31, 2024, to CAD 178,938 thousand as of September 30, 2025, representing a decline of approximately 5.9%[3] - Total liabilities decreased from CAD 108,431 thousand as of December 31, 2024, to CAD 101,480 thousand as of September 30, 2025, a reduction of about 6.4%[3] - The company’s total equity decreased from CAD 81,217 thousand as of December 31, 2024, to CAD 77,458 thousand as of September 30, 2025, a decline of approximately 4.5%[3] - Non-current assets totaled $66,280,000 as of September 30, 2025, down from $70,872,000 as of December 31, 2024, representing a decrease of 6.5%[46] Cash and Liquidity - Cash and cash equivalents increased significantly from CAD 8,530 thousand as of December 31, 2024, to CAD 14,891 thousand as of September 30, 2025, reflecting a growth of approximately 74.5%[3] - The company’s total cash and cash equivalents were $14,891,000 as of September 30, 2025, indicating liquidity available for operations and investments[52] Loans and Allowances - As of September 30, 2025, gross loans receivable totaled CAD 76,173,000, with an allowance for loan losses of CAD 16,354,000[28] - The net loans receivable amounted to CAD 59,819,000, reflecting an increase from CAD 58,620,000 as of December 31, 2024[28] - The provision for loan losses for the three months ended September 30, 2025, was CAD 1,100,000, compared to CAD 481,000 for the same period in 2024[30] - The allowance for loan losses increased from CAD 14,076,000 at the beginning of the period to CAD 16,354,000 by the end of September 30, 2025[30] Shareholder Information - The weighted average number of basic and fully diluted common shares for the three months ended September 30, 2025, was 23,868 thousand, a decrease from 24,383 thousand in the same period of 2024[7] - The company has 23,968,550 common shares outstanding as of September 30, 2025, down from 24,472,377 as of December 31, 2024[71] - The company repurchased 523,091 common shares at an average price of CAD 2.02 per share, totaling CAD 1,058,000 for the nine months ended September 30, 2025[72] Debt and Credit Facilities - The principal and interest balance outstanding for the credit facility as of September 30, 2025, was CAD 50,875,000, up from CAD 48,792,000 as of December 31, 2024[33] - The balance of the credit facility increased to CAD 50,875,000 as of September 30, 2025, compared to CAD 48,792,000 at the end of 2024, marking a rise of 4.4%[36] - The principal balance of debentures decreased to CAD 33,494,000 as of September 30, 2025, from CAD 35,257,000 as of December 31, 2024, reflecting a reduction of 5.0%[38] - The senior secured credit facility was amended to extend the maturity date to January 2, 2029, with a reduced interest rate of 7% plus the greater of 2% or the Secured Overnight Financing Rate[33] Investment and Marketable Securities - Marketable securities decreased from CAD 26,085,000 as of December 31, 2024, to CAD 20,829,000 as of September 30, 2025[31] - As of September 30, 2025, the company's investment portfolio balance was CAD 7,136,000, down from CAD 11,991,000 as of December 31, 2024, reflecting a decrease of approximately 40.4%[56] - The company disposed of CAD 715,000 from its investment portfolio in Q3 2025, and recognized an unrealized loss of CAD 1,276,000 during the same period[56] Risk Management - The company's credit risk is primarily associated with loans receivable, with ongoing evaluations and an allowance for loan loss to mitigate potential defaults[62] - The company is exposed to interest rate risk primarily related to its credit facility, which could affect cash flows and fair value of financial assets[65] Stock Options and Compensation - As of September 30, 2025, the company has 3,519,000 stock options outstanding with a weighted average exercise price of $2.71[77] - The total stock-based compensation costs related to options for the three months ended September 30, 2025, was $577, compared to $579 for the same period in 2024[79] - The company issued 814,000 stock options during the year, with a weighted average grant date fair value of $1.35[78] - The expected volatility in market price of shares for options granted was 90%-92% for the nine months ended September 30, 2025[78] - The company had a forfeiture rate for options ranging from 0% to 15% for the nine months ended September 30, 2025[78]